Oil prices fell from seven-year highs on Monday on signs of progress in nuclear talks between the United States and Iran, which could lead to the lifting of US sanctions on Iranian oil sales.
* Crude oil prices had extended their rise to a seventh consecutive week on Friday, due to continued concerns over supply problems and political turmoil among the world’s top producers.
* Brent crude fell 58 cents, or 0.62%, to $92.69, having earlier hit a high since October 2014 of $94.
* US West Texas Intermediate crude fell $0.99, or 1.07%, to $91.32, after hitting $92.73.
* The administration of US President Joe Biden on Friday reinstated sanctions waiver on Iran to allow international nuclear cooperation projects, as talks on the 2015 international nuclear deal enter the final stretch.
* Although the sanctions relief will have a limited impact on Iran’s troubled economy, the move was seen by markets as a sign that both sides are determined to reach a deal.
* Speaking on condition of anonymity, a European official said the main envoys to the Vienna talks, which are indirect because Iran has so far refused to sit down with US diplomats, are likely to meet in the Austrian capital on Tuesday.
* Iran could quickly export millions of barrels of crude and help push down oil prices if US sanctions are lifted.
* “In addition to the good vibes coming from the negotiations, the Biden administration is under pressure to reduce inflation, and the quickest way to do that would be to lower energy prices,” said Bob Yawger, director of energy futures at Mizuho.
* Crude prices, which have risen about 20% this year, are likely to top $100 a barrel on strong global demand, analysts say.
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